Jacob Music (Pty) Ltd (Gala) with a primary function of a music production company to locate artists and facilitate the recording, manufacturing, and distribution of musical products. Jacob Music (Pty) Ltd entered into an agreement with Milo Events (Pty) Ltd). Milo (Pty) Ltd is a full-service event planning company that provides complete planning, consulting, and supervision for both corporate and social events. In this agreement, Jacob (Pty) Ltd will provide performing artists for Milos all white party on 2 July 2022, and in exchange Milo (Pty ) Ltd will waive the performers' registration fee of R30000 (VAT inclusive).

Gala charges R12750 (VAT inclusive) booking fees (not registration fee) for its artists per event. Jacob will provide three performing artists for Milos all white party on 2 July 2022. Both companies have 30 June year ends and both are registered vendors in terms of the Value-Added Tax Act, 1991 (Act 89 of 1991), as amende

discuss in terms of the Value-Added Tax Act, 1991 (Act 89 of 1991) and applicable case law, if any, the output tax consequences for Jacob Music (Pty) Ltd of entering into the agreement with Milo Events (Pty) Ltd for the year ended 30 June 2023. For this question, assume that Jacob Music (Pty) Ltd had not received nor issued a valid tax invoice.